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RHONE-POULENC RORER REPORTS DOUBLING IN ANNUAL EARNINGS

 RHONE-POULENC RORER REPORTS DOUBLING IN ANNUAL EARNINGS
 COLLEGEVILLE, Pa., and PARIS, Feb. 3 /PRNewswire/ -- Rhone-Poulenc


Rorer (NYSE: RPR) today reported strong growth in fourth quarter net income and a more than two-fold increase in 1991 full year net income compared to 1990 on a pro forma basis.
 Pro forma 1990 amounts reflect the July 31, 1990, merger of the Human Pharmaceutical Business (HPB) of Rhone-Poulenc with Rorer Group as if it took place on Jan. 1, 1990, and exclude gains on disposal of non-strategic assets and restructuring charges.
 "1991 was a remarkable year," stated Robert E. Cawthorn, chairman and chief executive officer. "In our first full year of operation, we created a unique global organization, we successfully focused marketing and R&D, we sold off non-strategic assets, we improved our balance sheet, and we achieved the ambitious margin improvement and earnings growth objectives we set for ourselves."
 Full Year 1991 Results
 Net income in 1991 reached $326 million ($2.37 per share). This was more than double pro forma 1990 net income of $145 million ($1.08 per share) -- even excluding approximately $22 million in 1991 pretax gains (11 cents per share) on the sale of non-strategic assets net of restructuring charges. Earnings benefitted from improvements in sales coupled with operating efficiencies. In addition, net interest expense was $40 million lower than 1990 pro forma reflecting reduced cost of borrowing and a reduction in net debt during the year.
 For the year, RPR reported sales of $3.8 billion versus $3.6 billion in 1990. On an operational basis (excluding currency fluctuations and product divestitures) sales increased by 13 percent over pro forma 1990. Sales of the key products selected for global or local marketing focus increased by approximately 25 percent. Sales were particularly strong in North America and Germany and in Armour, RPR's plasma fraction business. Sales in France were aided by higher fourth quarter sales of anti-infectives and analgesics.
 Sales in 1991 also benefitted from successful new product introductions -- including Vasten(R) a cholesterol lowering agent and Zoltum(R) for ulcers, both launched in France, and Nasacort(R), the first once daily nasal steroid for the treatment of allergic rhinitis introduced in the United States.
 Fourth Quarter Results
 For the fourth quarter, RPR reported sales of $1.1 billion versus $1.1 billion in 1990. On an operational basis (excluding the effects of currency fluctuations and divested products), sales increased by 14 percent. Net income in the fourth quarter was $124 million (90 cents per share). This included approximately $13 million in pretax gains on the sale of non-strategic products and assets, net of restructuring charges, whereas 1990 fourth quarter net income of $163 million included a $79 million pretax gain on similar items. Excluding these, net income grew by 30 percent.
 Cawthorn summarized: "Our unique, global structure sets us apart from our competitors. It gives us leverage to take full advantage of the global forces that are shaping the health care environment. Given this competitive edge, I am confident that our earnings growth will continue to outpace the rest of the pharmaceutical industry."
 Rhone-Poulenc Rorer is a global pharmaceutical company dedicated to the discovery, development, manufacturing, and marketing of human pharmaceuticals. Rhone-Poulenc Rorer has annual sales of $3.8 billion and research expenditures of more than $440 million. The company operates in all major markets of the world.
 RHONE-POULENC RORER INC. AND SUBSIDIARIES
 CONDENSED CONSOLIDATED STATEMENTS OF INCOME
 (Unaudited-dollars and shares in millions, except per share data)
 Year Ended Dec. 31 Actual Actual Pro Forma
 1991 1990 1990
 Net sales 3,824.3 2,917.4 3,615.0
 Cost of products sold 1,360.7 1,076.0 1,355.9
 Selling, delivery and
 administrative expenses 1,363.3 1,101.0 1,365.8
 Research and development expenses 444.5 339.8 432.9
 Restructuring gain (charge) - net 22.1 (210.4) --
 Net interest expense 149.2 137.8 189.2
 Other expense 42.8 35.5 39.7
 Income before income taxes &
 minority interest 485.9 16.9 231.5
 Provision for income taxes 155.5 9.6 78.7
 Minority interest 3.9 6.3 7.8
 Net income before preferred
 stock dividend 326.5 1.0 145.0
 Dividend on preferred stock .4 -- --
 Net income available to
 common shareholders 326.1 1.0 145.0
 Dividends per common share .445 .42 N/A
 Average number of common
 shares outstanding 137.7 114.1 133.8
 Earnings per common share 2.37 .01 1.08
 Per share amounts and shares outstanding have been adjusted to reflect a two-for-one split of the company's common stock effective June 7, 1991.
 Actual results include the results of Rhone-Poulenc's Human Pharmaceutical Business (HPB) from May 5, 1990.
 Restructuring gain (charge) - net includes gain from sale of non-strategic assets (1991: $95.7; 1990: $78.8) less provision for restructuring charges (1991: $73.6; 1990: $289.3).
 The 1990 pro forma information shows the results of the company's operations as if the combination of HPB and Rorer had occurred at Jan. 1, 1990, and includes adjustments to interest expense and average shares outstanding. Additionally, the 1990 pro forma information excludes restructuring charges and the gains from the sale of non-strategic assets; income taxes have been provided at an estimated full year rate of 34 percent. Certain reclassifications were made to the 1990 information to conform to 1991 classifications.
 RHONE-POULENC RORER INC. AND SUBSIDIARIES
 CONDENSED CONSOLIDATED STATEMENTS OF INCOME
 (Unaudited-dollars and shares in millions, except per share data)
 Three months ended Dec. 31 Actual Actual Pro Forma
 1991 1990 1990
 Net sales 1,110.0 1,102.8 1,102.8
 Cost of products sold 386.4 410.3 410.3
 Selling, delivery and
 administrative expenses 379.4 376.3 376.3
 Research and development expenses 119.3 121.7 121.7
 Restructuring gain (charge) - net 12.7 78.8 --
 Net interest expense 29.9 46.6 46.6
 Other expense 20.1 10.0 10.0
 Income before income taxes &
 minority interest 187.6 216.7 137.9
 Provision for income taxes 62.4 52.1 46.9
 Minority interest .6 1.8 1.8
 Net income before preferred
 stock dividend 124.6 162.8 89.2
 Dividend on preferred stock .4 -- --
 Net income available to
 common shareholders 124.2 162.8 89.2
 Dividends per common share .12 .105 N/A
 Average number of common
 shares outstanding 137.9 134.6 134.6
 Earnings per common share .90 1.21 .66
 Per share amounts and shares outstanding have been adjusted to reflect a two-for-one split of the company's common stock effective June 7, 1991.
 Actual results include the results of Rhone-Poulenc's Human Pharmaceutical Business (HPB) from May 5, 1990.
 Restructuring gain (charge) - net includes gain from sale of non-strategic assets (1991: $26.6; 1990: $78.8) less provision for restructuring charges (1991: $13.9).
 The 1990 pro forma information shows the results of the company's operations as if the combination of HPB and Rorer had occurred at Jan. 1, 1990, and reflects adjustments to exclude the fourth quarter 1990 gain from sale of non-strategic assets; in addition, income taxes have been provided at an estimated full-year rate of 34 percent. Certain reclassifications were made to the 1990 information to conform to 1991 classifications.
 /delval/
 -0- 2/3/92
 /CONTACT: Rhone-Poulenc Rorer media relations, 215-454-3871 or 215-454-8035, or investor relations, 215-454-3851/
 (RPR) CO: Rhone-Poulenc Rorer Inc. ST: Pennsylvania IN: MTC SU: ERN


SF -- PHM001 -- 5937 02/03/92 06:01 EST
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